The excitement of buying a car can sometimes be overwhelming for consumers. Car dealers are known to be persuaders when selling cars, however, they don't always stop there. Often times once you decide to by the car, dealers will manipulate you into thinking your best option is financing directly with them. Although dealerships may very well have competitive rates, it is more likely that they are inflated compared to other car finance loans.
Two more competitive options include taking out a home equity loan or using a personal loan from your bank. Home equity loans are often times a favorable option because they offer low interest rates. However, your car is attached to your house when using this type of loan. You can avoid this attachment by applying for a personal loan with your bank, which is one reason why we do not recommend attaining a car title loan.